European equity

A focus on rigorous fundamental research to identify European businesses with strong and sustainable levels of profitability and low capital intensity.

Using a fundamental, bottom-up analytical approach, we construct high conviction portfolios of quality companies across Europe. We aim to invest for the long-term by focussing on sustainable profitability and growth.

The team’s philosophy is based on the following three principles:

  1. Scepticism: Multi-disciplinary deductive approach
  2. High conviction: In-depth research and continuous re-examination
  3. Focus: Long-term shareholder value creation and compounding

We focus on long-term sustainable profitability and economic growth within an active ownership framework, with integrated ESG factor analysis. As such, companies we consider to be attractive investments display the following characteristics:

  • Persistence: Strong and consistent operational performance
  • Governance: Low capital intensity (capital light) which translate substantial cash generation
  • Competitive advantage: Higher value creation than peer companies

We integrate risk management at a granular level into our investment process. The team’s portfolio engineering is a valued asset which, when interlinked with our investment philosophy, empowers the team to have a differentiated approach. We use this risk management approach to analyse how we utilise risk and ensure it is in the most appropriate manner, as well as creating proprietary research and data analysis. 

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“We look to invest in attractive businesses over long time periods. We do this through environmental, social and governance (ESG) integrated, unconstrained portfolios.”

David Lambert

Senior Portfolio Manager and Head of RBC European Equity

Meet the European equity team